DETROIT (AP) — Tim Kuniskis, CEO of the Ram and Dodge brands and the unofficial voice of American muscle cars, is retiring after nearly 32 years with Stellantis.
The announcement Friday comes as Stellantis struggles with U.S. sales as it begins the transition from internal combustion to electric vehicles. Through April, its sales were down 14.1% while the industry as a whole saw a 3.1% increase, according to Motorintelligence.com.
For years Kuniskis was the spokesman for high-performance American cars, introducing many powerful models including last year's 1,025 horsepower Challenger SRT Demon 170.
But in March, Kuniskis led the unveiling of two battery-powered versions of the Charger muscle car, while keeping one gas-powered version of the Charger without a big Hemi V8.
Recently Kuniskis was CEO of both the Dodge and Ram brands. He’ll be replaced at Ram by Chris Feuell, who will take on Ram in addition to her duties leading the Chrysler brand.
Matt McAlear will become Dodge brand CEO. He led Dodge sales and has broad automotive experience, the company said in a statement.
Both brands are struggling with Dodge phasing out the old versions of the gas powered Charger and Challenger as it moves to electric vehicles. Dodge sales through April are down more than 17%. The brand also is selling the Hornet small SUV made in Italy, but it hasn't caught on.
Ram sales are down over 29% so far this year as a Michigan factory is retooled to build an updated full-size pickup.
Kuniskis' passion and vision for the Dodge brand will be a loss, but someone else at Stellantis may be able to take over, said S&P Global analyst Stephanie Brinley.
“Dodge muscle car future is going through change, regardless of who is at the helm," Brinley said in an email. “Success will still come to product execution and whether the vision for the Dodge brand aligns with how customers see the brand. It wouldn’t be wise to presume no one else can champion the brand.”
At a March event in Detroit showing off the new electric Chargers, Kuniskis also exhibited a gas-fueled Charger powered by a new 3-liter six-cylinder engine with two turbochargers. A high-output version will have 550 horsepower.
Kuniskis defended keeping the gasoline version and said the electric muscle cars, which will roar like gas-engine vehicles, will emphasize performance over efficiency.
Under normal circumstance, he said, about 17 million vehicles are sold annually in the U.S. “You know what? People need choices,” he said.
Kuniskis said he would expect criticism from environmental groups if Dodge had not come out with electric versions of the Charger.
“It’s designed for performance and it has low range, but it’s still a battery electric vehicle. They’re going to hate on that? Seems kind of odd,” he said.
Globally, Stellantis' first quarter global vehicle shipments fell 10% from a year ago to 1.34 million, and revenue dropped 12% to 41.7 billion euros ($44.8 billion).
The company blamed the revenue dip on lower sales as it manages production and inventory while launching 25 new models this year, including 18 electric vehicles. Chief Financial Officer Natalie Knight said Stellantis believes the new models will bring “materially improved growth and profitability in the second half."
FILE - Tim Kuniskis, head of Dodge Brand talks about the Dodge Charger Daytona SRT concept before its unveiling on Aug. 17, 2022, in Pontiac, Mich. Kuniskis, the unofficial voice of American muscle cars, is retiring from Stellantis after nearly 32 years with the company. (AP Photo/Carlos Osorio, File)
FILE - Tim Kuniskis talks about the company's Dodge Charger Daytona SRT concept during its unveiling, Aug. 17, 2022, in Pontiac, Mich. Kuniskis, CEO of the Ram and Dodge brands and the unofficial voice of American muscle cars, is retiring from Stellantis after nearly 32 years with the company. (AP Photo/Carlos Osorio, File)
WASHINGTON (AP) — Chair Jerome Powell said Thursday that the Federal Reserve will likely cut its key interest rate slowly and deliberately in the coming months, in part because inflation has shown signs of persistence and the Fed's officials want to see where it heads next.
Powell, speaking in Dallas, said that inflation is edging closer to the central bank's 2% target, “but it is not there yet."
At the same time, he said, the economy is strong, and the policymakers can take time to monitor the path of inflation.
“The economy is not sending any signals that we need to be in a hurry to lower rates,” the Fed chair said. “The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully.”
Economists expect the Fed to announce another quarter-point rate cut in December, after a quarter-point reduction last week and half-point cut in September.
But the Fed's steps after that are much less clear. In September, the central bank's officials collectively signaled that they envisioned cutting their key rate four times in 2025. Wall Street traders, though, now expect just two rate reductions, according to futures pricing tracked by CME FedWatch. And after Powell's cautious remarks Thursday, traders estimated the likelihood of a Fed rate cut in December at just below 59%, down from 83% a day earlier.
The Fed's benchmark interest rate tends to influence borrowing rates across the economy, including for mortgages, auto loans and credit cards. Other factors, though, can also push up longer-term rates, notably expectations for inflation and economic growth.
For example, Donald Trump's presidential election victory has sent yields on Treasury securities higher. It is a sign that investors expect faster growth next year as well as potentially larger budget deficits and even higher inflation should Trump impose widespread tariffs and mass deportations of migrants as he has promised.
In his remarks Thursday, Powell suggested that inflation may remain stuck somewhat above the Fed's target in the coming months. But he reiterated that inflation should eventually decline further, “albeit on a sometimes bumpy path.”
Under questioning, Powell also explained why he considers the Fed's role as an independent federal agency to be crucial to its ability to fight inflation. During his first term, Trump threatened to try to fire Powell for not cutting interest rates. And during this year’s election campaign, Trump asserted that as president, he should have a “say” on the Fed's rate policies.
Powell said Thursday that the Fed's independence from political concerns has made the public confident that the policymakers will keep inflation low over time. That confidence, in turn, has helped reduce inflation after it had spiked in the wake of the pandemic. When consumers and businesses expect inflation to slow, they act in ways that help hold it down — by, for example, not demanding high cost-of-living raises.
“The public," Powell said, "believed that we would get inflation down, that we would restore price stability. And that’s ultimately the key to it.”
Powell declined to comment on other political topics, including the potential impacts of Trump's proposals to impose sweeping tariffs and implement mass deport
Other Fed officials have also recently expressed uncertainty about how much more they can cut rates, given the economy’s steady growth and the apparent stickiness of inflation.
As measured by the central bank’s preferred inflation gauge, so-called core prices, which exclude volatile food and energy costs, have been stuck in the high 2% range for five months.
On Wednesday, Lorie Logan, president of the Fed’s Dallas branch, said it was not clear how much more the Fed should cut its key short-term rate.
“If we cut too far ... inflation could reaccelerate and the (Fed) could need to reverse direction,” Logan said. “I believe it’s best to proceed with caution.”
Federal Reserve Chair Jerome Powell, left, speaks to the Dallas Regional Chamber as moderator Catherine Rampell looks during an event in Music Hall at Fair Park Thursday, Nov. 14, 2024, in Dallas. (AP Photo/LM Otero)
Federal Reserve Chair Jerome Powell, left, speaks to the Dallas Regional Chamber as moderator Catherine Rampell looks during an event in Music Hall at Fair Park Thursday, Nov. 14, 2024, in Dallas. (AP Photo/LM Otero)
Federal Reserve Chair Jerome Powell, left, speaks to the Dallas Regional Chamber as moderator Catherine Rampell looks during an event in Music Hall at Fair Park Thursday, Nov. 14, 2024, in Dallas. (AP Photo/LM Otero)
Federal Reserve Chair Jerome Powell speaks to the Dallas Regional Chamber during an event in Music Hall at Fair Park Thursday, Nov. 14, 2024, in Dallas. (AP Photo/LM Otero)
Federal Reserve Chair Jerome Powell listens to a question from the moderator on the stage during a Dallas Regional Chamber event in Music Hall at Fair Park Thursday, Nov. 14, 2024, in Dallas. (AP Photo/LM Otero)
Federal Reserve Chair Jerome Powell listens to a question during a Dallas Regional Chamber event in Music Hall at Fair Park Thursday, Nov. 14, 2024, in Dallas. (AP Photo/LM Otero)
Federal Reserve Chair Jerome Powell speaks to the Dallas Regional Chamber during an event in Music Hall at Fair Park Thursday, Nov. 14, 2024, in Dallas. (AP Photo/LM Otero)
